31-May-2023 | Facts and Factors
According to the Facts & Factors report, the global data center colocation market size was nearly $62.3 billion in 2022 and is set to increase to about $89.3 billion by 2030 along with securing the highest CAGR of 14.7% from 2023 to 2030.
A colocation unit is a data center facility in which businesses rent the space for servers and other computing hardware. Furthermore, data center colocation offers the building, power, cooling, physical security, and bandwidth to customers. In addition to this, data center colocation provides customers with both servers and storage. Reportedly, the data center colocation offers excellent data connectivity to the customers.
Browse the full report “Data Center Colocation Market Size, Share, Growth Analysis Report By Colocation Type (Retail and Wholesale), By End-Use (IT & Telecom and Healthcare), By Enterprise Size (Large Enterprises and Small & Medium Enterprises), and By Region - Global and Regional Industry Insights, Overview, Comprehensive Analysis, Trends, Statistical Research, Market Intelligence, Historical Data and Forecast 2023 – 2030” at https://www.fnfresearch.com/data-center-colocation-market
Growing demand for higher bandwidth connections will steer the growth of the global data center colocation market. Furthermore, continuous acceptance of new technologies such as cloud computing, advanced robotics, IoT, and autonomous vehicles will embellish the global market trends.
A rise in data traffic along with humungous demand for expanded network capacity will steer the global market expansion. The onset of the 5G network will further prop up the growth of the market across the globe. An increase in the number of mobile network sites and the installation of wireless spectrum will prop up the growth of the global market.
Nevertheless, huge maintenance costs can pose a big threat to the global data center colocation industry expansion. However, surge in the smartphone usage along with the growing popularity of cloud gaming, streaming services, and OTT tools as well as the huge demand for immersive applications will open new growth avenues for the global industry.
global data center colocation market is segregated into colocation type, end-use, enterprise size, and region.
The colocation type segment of the data center colocation market is subdivided into retail and wholesale segments. Furthermore, the retail segment, which contributed more than two-thirds of the global market share in 2022, is predicted to establish its segmental dominance in the ensuing years. The segmental growth in the ensuing years can be attributed to the ability of retail spaces for providing power, space, cabling, and support services to its customers.
On the basis of end-use, the data center colocation industry across the globe is divided into IT & telecom and healthcare segments. The IT & telecom segment, which held more than one-fourth of the global industry share in 2022, is set to register the fastest CAGR in the next few years. The expansion of the segment in the analysis period can be due to a rise in the number of internet users across the globe.
In addition to this, the launching of new applications and surge in the smartphone penetration across the globe will provide a strong platform for the segmental elevation in the next couple of years.
In terms of enterprise size, the data center colocation market across the globe is segmented into large enterprises and small & medium enterprises segments. Moreover, the large enterprise segment, which dominated the segmental growth in 2022, is anticipated to record the highest CAGR in the forecasting years.
The segmental expansion over the forecast timespan can be due to the rise in the demand for large spaces on rent along with a growing need for power & computations.
Furthermore, the North American region, which contributed majorly towards the overall share of the data center colocation industry in 2022, is predicted to continue its domination in the ensuing years.
The regional market surge in the next few years can be owing to an increase in the presence of big data centers in the countries such as the U.S. In addition to this, swift acceptance of new data center solutions will steer the regional industry trends in the foreseeable future.
Market Size in 2022
USD 62.3 Billion
Projected Market Size in 2030
USD 89.3 Billion
CAGR Growth Rate
Key Market Players
CyrusOne Inc., Digital Realty Trust Inc., China Telecom Corp. Ltd., CoreSite Realty Corp., Cyxtera Technologies Inc., Equinix Inc., Global Switch, NTT Communications Corp., NaviSite, Telehouse., and others.
By Colocation Type, End-Use, Enterprise Size, and Region
Major Regions Covered
North America, Europe, Asia Pacific, Latin America, and the Middle East &, Africa
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Key players in the global data center colocation market include CyrusOne, Inc., Digital Realty Trust, Inc., China Telecom Corp. Ltd., CoreSite Realty Corp., Cyxtera Technologies, Inc., Equinix, Inc., Global Switch, NTT Communications Corp., NaviSite, and Telehouse.
- In the first quarter of 2023, Web Werks and Iron Mountain in a joint venture introduced their first data center colocation referred to as HYD-1. Moreover, the new data center colocation is established in Hyderabad in India. The move is aimed at increasing the data storage capacity of IT firms. Moreover, the initiative will account lucratively for the expansion of the data center colocation industry size in the Asia-Pacific zone.
- In the first half of 2023, Onix Data Centres Ltd, a firm owning & operating data centers in Ghana, introduced new data center colocation in Senegal. The strategic move will help in improving network connectivity and increasing economic growth in West Africa.
- In the third quarter of 2020, Yotta Infrastructure, a giant firm in the real estate industry in India, introduced the world’s second-largest data center in Navi Mumbai in India. The initiative will increase the scope of the data center colocation industry expansion in India and across the globe.
The global data center colocation market is segmented as follows:
By Colocation Type
By Enterprise Size
- Large Enterprises
- Small & Medium Enterprises
- North America
- The UK
- Nordic Countries
- Benelux Union
- The Netherlands
- Rest of Europe
- Asia Pacific
- South Korea
- Southeast Asia
- Rest of Southeast Asia
- Rest of Asia Pacific
- The Middle East & Africa
- Saudi Arabia
- South Africa
- Rest of the Middle East & Africa
- Latin America
- Rest of Latin America
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